Tulsa’s Mid-Con Energy Partners, LP took some drastic actions in 2019 to do something about losses and as a result slashed losses in 2019, going from $18.3 million in 2018 losses to $599,000 last year.
The 2018 losses amounted to 74 cents a share while the 2019 losses were only 17 cent per unit, all this on 2019 total revenues of nearly $63.2 million.
“The Partnership acquired a significant number of mature water flood properties in Oklahoma during 2019 and successfully achieved first water injection at our Pine Tree Shannon Unit in Wyoming,” said President and Chief Operating Officer, Chad Roller. “Our PTSU, made effective in the fourth quarter of 2019, represents the largest waterflood development in the history of the Partnership. In the fourth quarter, we drilled wells and collected core in two Oklahoma waterflood properties acquired in 2018 with promising early results from preliminary core analysis.”
He said the company is still reviewing its 2020 capex and will issue a decision later this year. The Partnership spent $4.5 million on capital expenditures during the fourth quarter of 2019, compared to CAPEX of $4.3 million during the third quarter of 2019. The increased capital spend was related to drilling five wells (three producing wells and two injection wells) in Oklahoma, re-completion programs in Wyoming and Oklahoma and continued progress on the PTSU waterflood project in Wyoming. High priority CAPEX in 2020 will be directed to the PTSU waterflood project in Wyoming and waterflood optimization projects in Oklahoma.
In 2019, the company sold all of its oil and natural gas properties in Texas for nearly $60 million and used the proceeds to buy more than $28 million in oil and natural gas properties in Osage, Grady and Caddo counties in Oklahoma.
In 2019, Mid-Con drilled two injection wells and 5 producing wells in Oklahoma as well as one water supply well in Wyoming.
Source: Mid-Con release